Reacting to this, shares of the company made a bullish opening on BSE and further surged 8.1 percent to Rs 27.35. On the volume front, 21.41 lakh shares of the company changed hands on BSE.

No-frills carrier SpiceJet is in active discussions with Singapore-based budget carrier Tigerair for a possible stake sale even as they are set to sign a code share agreement soon, sources said.

According to sources, SpiceJet promoter and media baron Kalanithi Maran may offload up to 24 percent to Tigerair as the airline faces fall in profits and attempts to retire debt, the sources familiar with the development said.

The Chennai-based airline reported a 10 percent fall in its net profit in the June quarter.

"SpiceJet and Tigerair have already held two rounds of talks for a possible equity deal as promoter Maran is looking for the FDI route for further funds infusion," sources said.

The discussions between the two on code-share are at the concluding stage and an announcement to this effect may come in any time now, according to sources.

Code share is a commercial agreement between two airlines transferring seats among themselves from one destination to another.